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Topic: The best leverage. 0.5x or 1x? (Read 50 times)

legendary
Activity: 1624
Merit: 1200
Gamble responsibly
October 25, 2022, 02:45:28 AM
#1
Let us get further into the real discussion about profitable trading. Know that using 2x or higher but not more than 5x is still good for some professional traders, but making trading to be highly risky. On this thread, we ain't talking about any leverage above 1x, it should be like a debate between the 0.5x and 1x.

Exchanges like OKX offer trading using 0.5x, but this would work better if you have larger amount like over $1000 as your trading fund. But if you use exchanges like Binance or other trustworthy ones that has no option of 0.5x leverage, you can still go for 0.5x with 1x. Assuming you have $500 as your trading fund, all you need to do is to open a position with $250 (half of the money you are trading with) to make it 0.5x.

Those amount are still small, I have noticed the big traders, trading with big amount of money are using a very low leverage and if they are losing, they do not close position, they leave it and most often the market correct itself and they gain. Big traders are sucking the money of the small traders is the reality as the small traders use high leverages. But know that newbies that started big will go poor. So this applies to professional traders, not those that just start. For starters, use the amount of money you can afford to lose until you make 50 consecutive or more successful trades before you believe in yourself.

So traders just set 0.5x, if the market against them, they increase it and not further than 1x, to bring the entry price closer to the mark price. This is a good strategy. But some will just prefer to go for 1x and never go beyond, if trading goes wrong and indicators and analyses failed at the time, they leave the leverage and the position alone until the market favour them.

Among this two leverage, which one is perfect for you? Or you prefer to just go higher more than 1x? But I have noticed professional traders trade with big amount but with very low leverage.
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